Teaching Notes & Study Guide

with Jerry Shapiro
Petrofsky's
St. Louis, Missouri
Key Ideas.

Key Idea #1: . Put your plan in writing.
Jerry bought a business plan workbook and forced himself to answer every question asked by the authors of the book. Filling in every blank helped him understand what he was facing. His idea was innovative which was both exciting and scary. He had to buy a one million dollar freezer and convince a whole country that bagels are delicious and healthy.

What do you think?  Why doesn't everybody put their business plan in writing?

Possible answer:  It doesn't seem to be a requirement to succeed. Most business owners have never written a plan because they keep their goals in their head. Since they are the boss, there is no one making them put their ideas down on paper. The biggest motivator for a written plan is to secure financing. Either investors or bankers have to see on paper what it is you are doing or hope to do.

When Margaret and Paula Quenemoen found themselves burdened with debt; they took their "bible" to a local banker, and she was so impressed, she helped them restructure their debt. The "bible" to them is their business plan. They say it is most powerful for recruiting employees into the company.

There's a template for a business plan in the sb2000.com web site.

Big Idea #2 Involve your customers in the development of your product. 
Jerry made more than fifty trips to Japan. He set up booths at trade shows and gave away hot buttered bagels. He organized focus groups to taste the bagels, and considered each suggestion. As a result, if you were to buy one of Jerry's bagels in Tokyo, you would find it is not only one-third smaller than the bagels you buy in this country, but also it is not as sweet.

What do you think?  What would have happened if Jerry simply would have shipped his regular bagels to Tokyo?

Answer:   He probably would have lost big bucks trying to make, ship, and sell a product that people don't enjoy on the first bite. If people have to acquire a taste for your product, you may run out of money before you are able to convince enough people to buy it from you just once.

 If you don't get word of mouth going about your product or services, you will have an uphill battle building a business. And the word of mouth doesn't happen if a customer's initial experience is iffy.

By talking to customers, you may uncover problems that will save you money in the long-run. You may also come up with an entirely new product. The best material on research here at SmallBusinessSchool.com is from Paul and Vickie Scharfman. Then learn more from Chris and Sarah Fortune, Peter Metcalf and Anne Beiler.


Key Idea #3: Be prepared to build long term relationships..
Jerry knew it would take a long time to build a market for Petrofsky's in Japan. He said no matter how long it took, he would work until the business became a success. Because he made that commitment, he took time to meet people, develop friends, and build on those friendships.

What do you think?  Are long-term relationships with customers important only when working in foreign markets?

Answer: No. All great companies are built on long-term relationships with their customers. Customers don't want a one-night stand. They want to know you are there for them when something breaks, or when they want to buy again

What do you think?  What does it take to build long-term relationships?

Answer: Patience and constant communication. Additionally, enough genuine concern to discover the details of the customers' preferences. Linda Benjamin, an attorney, takes copious notes about her clients. She knows personal details and remembers them to delight clients.

Key Idea #4: Fire with care .
Attorney John Dolan says to handle firing with documentation and stay cool. 

You think back:  What did John say is required of the business owner when he or she fires someone?

Answer:  The employee deserves all the pay for every day they have worked up to 24 hours before the firing takes place. Also be careful when you are called by potential future employers of the person you fired. If you say anything negative, you may be sued.